Umm Al Quwain Free Trade Zone (UAQFTZ) is the free zone of the UAE’s second smallest emirate, offering very affordable business setup options. Here is a complete guide to UAQFTZ in 2025.
About UAQFTZ
The Umm Al Quwain Free Trade Zone (UAQFTZ) is located in Umm Al Quwain, the UAE’s second smallest emirate by population, situated between Ajman and Ras Al Khaimah. UAQFTZ is one of the UAE’s most affordable free zones, popular for: e-commerce and online businesses, small trading companies, and individual entrepreneurs wanting a UAE business licence at minimal cost. Distance from Dubai: approximately 55km north of Dubai (45-60 minute drive).
UAQFTZ Pricing
UAQFTZ offers some of the most competitive pricing in the UAE: Professional services licence: from AED 4,500-7,000/year (one of the cheapest UAE free zone licences). Trading licence: from AED 7,000-12,000/year. Visa: AED 3,000-4,500 per visa (government fees). Virtual office: available with the basic licence package. Physical office: available from AED 8,000-15,000/year. Warehouse: from AED 10,000-25,000/year. E-commerce licence: from AED 6,000/year.
UAQFTZ Limitations
UAQFTZ is an excellent low-cost option but has some limitations: Bank account opening: some UAE banks may require additional documentation or be slower to open accounts for UAQ-based companies (vs. Dubai free zones). Client perception: UAE clients may be less familiar with UAQ as a business address vs. Dubai or Sharjah free zones. Physical infrastructure: smaller free zone with less developed support ecosystem (fewer service providers, advisors, and suppliers on-site vs. larger free zones). Best for: entrepreneurs who primarily operate online, small trading businesses, or anyone who needs a UAE licence at the lowest possible cost and does not need a Dubai address.
Pricing Evidence & Source Notes
Use this profile as a planning guide, not a final invoice. Confirm the current package, activity wording, visas, office or flexi-desk requirement and renewal amount before payment.
| Free Zone | Package | Year 1 Cost | Renewal Cost | 3-Year Total | Visa Option | Office / Flexi Requirement | Year 1 Confidence | Source Type | Conflict Status | Last Reviewed |
|---|---|---|---|---|---|---|---|---|---|---|
| Umm Al Quwain Free Trade Zone (UAQFTZ): Business Setup Guide | Current authority package | Quote-based - confirm current package Confidence: Needs confirmation |
Quote-based renewal - confirm current package Confidence: Needs confirmation |
Quote-based 3-year total - depends on renewal Confidence: Needs confirmation |
Depends on package and office allocation | Authority quote required | Authority quote required | Current package / renewal confirmation required | June 2026 |
| What is included | Confirmed only after authority or partner quote. |
|---|---|
| What is not included | Visas, insurance, medical, Emirates ID, office upgrades, amendments and cancellation unless quoted. |
| Hidden-cost risk | Confirm establishment card, visas, office/flexi desk, insurance, renewal and cancellation before payment. |
| Banking difficulty | Medium - depends on activity and documents |
| Best fit | Founders comparing this free zone against activity, visa, office, banking and renewal requirements. |
Source evidence: Review source | Methodology | Corrections.
Prices can change based on free zone authority updates, activity selection, visa count, office or flexi-desk requirement, shareholder structure, establishment card, immigration file, medical test, Emirates ID, insurance, banking support and consultant service fees. Last reviewed June 2026. Always request a current quote before payment. View methodology or compare all rows in the UAE Free Zone Cost Index.